Do you think it's proper for loan companies to call their customers' contacts when they default? - Gist Cent

It's no longer news that one of the measures loan companies in Nigeria use to recover their money from customers who have defaulted or refused to repay is by calling their contacts. My question now is whether such a measure is proper or not.

It's humiliating to break into someone's contact and begin telling his family and friends that he took a loan and has refused to repay it. Such an act can even prevent the customer from repaying since he or she has been disgraced in such a manner. 

I've been receiving a series of calls from different loan companies asking if I know some of their customers who took loans from them. They even begged me to assist in reaching out to them and also advised them to repay. 

When I asked how they got my contact, they said the person gave them permission to have access to his contact list while registering on their app and my phone number was saved on the person's phone. Honestly, it's funny because some people hardly read the terms and conditions when downloading apps. 

I'm not against the loan company recovering their money, but invading their customer's contact is not proper. As a company, there should be a procedure mapped out to recover their money from defaulters. Calling their contact won't provide much remedy, but rather it will serve as a means to embarrass the person involved. 

They should introduce something like auto debit since they have access to their customers' Bank Verification Number (BVN). Customers, on the other hand, should be careful before giving permission via mobile app. It's not proper to expose people's contact details to a third party without their consent. 

Do you think it's proper for loan companies to call their customers' contacts when they default? If you have had such an experience, kindly use the comment box and air your views. Thanks for reading.